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Theme 3 : Growing with Society

CSR Procurement Guidelines

CSR Procurement Guidelines

CSR Procurement Guidelines

Request to Business Partners Regarding the Guidelines

In accordance with the Komatsu Code of Worldwide Business Conduct (established in 1988), all companies of the Komatsu Group have worked together in pursuit of thorough compliance. Moreover, Komatsu has focused on corporate social responsibility (CSR) in its business management with the aim of coexisting with society and achieving sustainable growth. As part of this effort, Komatsu has participated in the Global Compact, a voluntary principle of action in relation to “human rights, labor, environment and prevention of corruption” advocated by the United Nations, since November 2008 and has also expressed its position as a global enterprise on critical issues confronting international society faces.
Against this backdrop, ISO26000 was officially issued in November 2010 to provide international guidance on social responsibility. Komatsu sincerely reacts to the issues set forth in ISO26000 and will exercise leadership so that social responsibility will be borne throughout the entire value chain.
According to the Komatsu Code of Worldwide Business Conduct, we shall “seek to establish long-lasting stable relationships on the basis of mutual trust” by considering business partners to be important partners of the Komatsu Group. The revision in April 2011 added statements that we shall encourage business partners to follow the spirit of Komatsu Code of Worldwide Business Conduct and that the criteria for the selection of business partners shall include their compliance with rules of business society.
The CSR Procurement Guidelines contain a list of practices recommended for our business partners in line with the basic policy above, covering compliance and CSR. Companies of the Komatsu Group are kindly requested to take note of and incorporate the guidelines into their management principles and unfailingly promote CSR. Moreover, we hope that these companies make similar requests to their suppliers.

April 1, 2021
Masaki Nobuhara, President of Komatsu Procurement Division

Komatsu Group CSR Procurement Guidelines

(Established on August 30, 2011; Revised on April 1, 2019 and on April 1, 2020)

1. Operations for Sound Management

  1. Build a system or operational structure designed to meet various risks.
  2. Establish legal and transparent decision-making processes concerning management.
  3. Conduct appropriate accounting procedures, tax filing and settlement of accounts.
  4. Place importance on communication with stakeholders (customers, shareholders, business partners, employees, etc.).
  5. Ensure that top management will be notified promptly when any abnormal condition develops and that your company will be able to promptly and accurately respond to the situation(s).
  6. Fulfill accountability to society through active disclosure of corporate information.
  7. Properly handle the personal information of customers, business partners and employees. Take appropriate measures for information security to ensure that the confidential business information provided by Komatsu or by business partners will not be leaked, lost or destroyed.
  8. Create an effective BCP so that, even in the event of large-scale natural disaster, infectious disease pandemic or any other emergency, we can appropriately take initial measures to ensure the safety of employees, quickly restore business operations and fulfill our responsibility to supply customers with products.

2. Thorough Enforcement of Compliance

  1. Engage in business operations while complying with the laws and regulations, as well as the rules of the business community in the countries and regions where we conduct business operations. In addition, make efforts to respect internationally accepted standards.
  2. Define a code of conduct, comprising company rules, under the leadership of senior management, and develop a corporate climate that places top priority on compliance.
  3. Establish a compliance regime, in accordance with the scale and characteristics of the company, that prevents the company, executives, and employees from engaging in illegal conduct, and promptly addresses situations where issues have occurred (e.g. a whistle-blowing system).

3. Product Safety, QCD and Technology Innovation

  1. Comply with the laws and regulations concerning product safety and deliver products and services which will offer safety and peace of mind to customers.
  2. In addition to maintaining the quality and cost competitiveness of products and services which your company delivers to customers, stand by the agreed upon date of delivery and supply your products in a stable manner.
  3. Establish a quality management system and make efforts to maintain and improve it.
  4. Constantly engage in technology development and provide innovative, safe and environmental-friendly products and services.

4. Considerations for the Environment

  1. Continue efforts to reduce environmental impact resulting from business operations.
  2. Appropriately manage chemical substances contained in products.
  3. Build up environmental management systems such as the ISO14000 series and "Eco Stage."

5. Measures to Respect Human Rights, Appropriate Labor Conditions and Occupational Safety and Health

  1. Respect human rights including the rights to freedom of association and collective bargaining.
  2. Never get involved, directly or indirectly, in any child or forced labor.
  3. Create a work environment where there is no discrimination or harassment in any aspect of employment.
  4. Respect the rights of workers, through payment of fair wages and proper working hours management.
  5. Establish a system for occupational labor health and safety, under the leadership of top management, and create a working environment where all employees can work safely and healthily.
  6. Establish fair and equitable human resource system, and pay attention to human resource development and employee education as well.
  7. Give consideration to improving communication between top management and employees.

6. Fair Business Practices

  1. Comply with all related laws and regulations and engage in free and fair competition and business transactions.
  2. Respect intellectual properties of other parties and work to prevent infringement thereof. 
  3. Never accept inappropriate cash, gifts or other favors from any civil servant or stakeholder (customer or business partner) either domestically or internationally.
  4. Carry out proper foreign trade transactions (goods and technologies) while complying with the related laws and regulations.
  5. Never have any relationship with antisocial forces or groups.

7. Social Contributions and Co-existence with the Local Community

  1. Engage in social contribution activities based on your company's management principle(s) and support employees' volunteer activities.
  2. Place importance on co-existence with local communities which is the foundation of your business, and proactively support the growth of local communities.

8. Spread of the guidelines throughout the Entire Supply Chain

  1. Encourage business partners of the company to observe the items stipulated in the guidelines. Make efforts to encourage the spread of these guidelines into the entire supply chain.
  • These guidelines will be revised as needed.
komatsu csr, Procurement Division, 総務部